HomeMy WebLinkAbout08 - Big Canyon Reservoir Auxiliary Maintenance Yard ProjectCITY OF
NEWPORT BEACH
City Council Staff Report
June 10, 2014
Agenda Item No. 8.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director- (949) 644 -3330,
dawebb @newportbeachca.gov
PREPARED BY: Fong Tse, Assistant City Engineer
PHONE: 949 - 644 -3321
TITLE: Big Canyon Reservoir Auxiliary Maintenance Yard Project — Award of Contract No.
5222 (CAP13 -0005)
ABSTRACT:
The Municipal Operations Department is in need of a satellite supply and storage facility for its field crews
working in the easterly portion of the City. Accordingly, contract documents were prepared and construction
bids have been received for the construction of such facility. Staff is requesting City Council's approval to
award the Big Canyon Reservoir Auxiliary Maintenance Yard Project to Optima Reengineering & Project
Management, Inc. (Optima RPM).
RECOMMENDATION:
a) Approve the project drawings and specifications;
b) Award Contract No. 5222 to Optima RPM, Inc. for the total bid price of $1,159,000.00, and
authorize the Mayor and City Clerk to execute the contract; and
c) Establish a contingency of $116,000.00 (approximately 10 percent) to cover the cost of
unforeseen work.
FUNDING REQUIREMENTS:
Upon approval of the FY14 -15 Capital Improvement Program Budget, sufficient funding will be
available for this project. Project costs will be expensed as follows:
Account Description
Account Number
Amount
Big Canyon Reservoir Auxiliary
Maintenance Yard
7402- C1002039
$ 1,300,000.00
Total:
$ 1,300,000.00
RN
Proposed uses are as follows:
Vendor
Purpose
Amount
Optima RPM
Construction Contract
$ 1,159,000.00
Optima RPM
Construction Contingency
$ 116,000.00
Incidentals
Material Testing, Special
Inspection, Commissioning
$ 25,000.00
4
Total:
$ 1,300,000.00
DISCUSSION:
With the consolidation of the Municipal Operation Department's General Services Division and
Utilities Division yards in the westerly side of the City, we need additional storage space as well
as more timely access to materials and supplies for the field crews in the easterly and
southeasterly portions of the City such as East Bluff, Newport Coast or Corona del Mar.
As part of the design development of this new satellite facility, we met with the surrounding
communities several times and incorporated many of their comments and suggestions into the
project documents. When completed, the project will have a 4,500 SF storage building that
spans across five enclosed garages; a 4,500 SF covered open shed attached to the rear of the
garages for oversized items; and additional landscaping beyond the original planting scope
along the property's perimeter fences as requested by the neighbors to future screen the
improvements from their views.
At 10:00 A.M. on May 8, 2014, the City Clerk opened and read the following bids for this
project:
Optima RPM is the apparent low bidder at $1,159,000.00. Optima RPM's bid is approximately
five percent above the $1,100,000 Engineer's Estimate.
Optima RPM submitted all of the necessary forms and possesses a valid California General
Engineering Contractor "A" License as required by the project specifications of the bidders.
Optima RPM also possesses a valid California General Builder Contractor "B" License as
required for the building construction. This "B" License allows them to perform two or more
unrelated specialized trades. A check of Optima RPM's references indicates satisfactory
completion of similar projects for other local agencies and the private sector.
On May 8, 2014, M.S. Construction Management Group (second low bidder) submitted the
attached formal bid protest letter to the Public Works Department citing Optima RPM's lack of
:.
BIDDER
TOTAL BID AMOUNT
Low
Optima RPM, Inc.
$ 1,159,000.00
2
M.S Construction Management Group
$ 1,225,550.00
3
GMC Engineering, Inc.
$ 1,364,000.00
4
Vido Samarzich, Inc.
$ 1,478,780.00
5
Adams Mallory Construction, Inc.
$ 1,647,112.00
6
Braugthon Construction, Inc.
$ 1,656,982.95
7
Green Building Corporation
$ 1,799,950.00
8
States Link Construction, Inc.
$ 1,809,857.70
9
Future DB International, Inc.
$ 1,875,178.02
Optima RPM is the apparent low bidder at $1,159,000.00. Optima RPM's bid is approximately
five percent above the $1,100,000 Engineer's Estimate.
Optima RPM submitted all of the necessary forms and possesses a valid California General
Engineering Contractor "A" License as required by the project specifications of the bidders.
Optima RPM also possesses a valid California General Builder Contractor "B" License as
required for the building construction. This "B" License allows them to perform two or more
unrelated specialized trades. A check of Optima RPM's references indicates satisfactory
completion of similar projects for other local agencies and the private sector.
On May 8, 2014, M.S. Construction Management Group (second low bidder) submitted the
attached formal bid protest letter to the Public Works Department citing Optima RPM's lack of
:.
subcontractors listing for certain "specialty work ". Staff reviewed the complaint and found it
without merit as Optima RPM intends to perform the "specialty work" with its own forces as
they did for the City's Lifeguard Headquarters Rehabilitation Project that they are currently
completing. Staff therefore recommends accepting Optima RPM as a responsive and
responsible bidder.
Pursuant to the contract specifications, Optima RPM will have 120 consecutive working days to
complete the construction excluding the 180 -day plant establishment and maintenance period.
ENVIRONMENTAL REVIEW:
Staff found this project categorically exempt under Section 15303, of the State CEQA
(California Environmental Quality Act) Guidelines - Class 3 (New Construction or Conversion of
Small Structures). The Class 3 exemption consists of construction and location of limited
numbers of new, small facilities or structures including but not limited to, accessory structures
such as garages, carports, patios, swimming pools, and fences. The project will construct a
single -story storage building that is accessory to existing facilities. In addition, the project site is
located in an urbanized area, not adjacent to an environmentally sensitive area, and does not
involve the use or storage of hazardous substances.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the
meeting at which the City Council considers the item).
ATTACHMENTS:
Description
Attachment A - Location Mar)
Attachment B - M.S. Construction Management Group's Request for Rejection of the Low Bidder's Bid Proposal dated May
9. 2014
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BIG CANYON RESERVOIR
AUXILIARY YARD
LOCATION MAP
ATTACHMENT A
A
A
N.T.S.
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C -5222 1 06/10/14
::
ti5M.S. Construction MgntnL Group
General Engineering Contractors
May 9, 2014
Mr. Fong Tse
Project Manager
City of Newport Beach
3300 Newport Beach Blvd.
Newport Beach, Ca. 92663
ATTACHMENT B
License # 721738
Commercial. Residential
VIA E -MAIL
e ,yervportbeachco eov
Ile: Big Canyon Reservoir Auxiliary Maintenance Yard — Project No. 5222
Bid Date- 5/8/14 [7x,10:00 A.M.
Request for rejection of the low bidder's Bid proposal
Dear Mr. Tse;
As you are aware, on May 3 2014 at 10:00 AM the City of Newport Beach hold a bid opening for the
above captioned project, and as the result "Optima RPM, :Itic," bid in the amount of $1,159,000 was announced
as the apparent low bidder.
Please accept this letter as our formal request from the City of Newport Beach to consider the "Optima
RPM, Inc." bid proposal as non- responsive, and consequently rejecting the same for the following reasons:
First Cause of Action:
1. The first paragraph on Page 8 of the Bid documents under the 'Designation pf Subcontractorjsl
indicates that, "State lino requires the listintt of.all subcontractors who will perforni work in
In their bid proposal, Optima RPM, Inc. only listed the following two subcontractors:
Subcontractor's information Bid item number Description of work
M &E Construction CMU and Concrete
ACE Tech Roofing Roofing
2. Bid proposal item numbers 16, 17, 18; and 19 relates to the Landscaping and Irrigation System.
The following licensing requirement is clearly indicated in Section 7 -15 (Contractor's licenses)
under "Partl- General Provisions" of the project Specification:
a The Landscaping and irrigation contractor: Landscaping "C27"
The Grand Total. listed amount by Optima RPM Inc. for bid item numbers 16, 17, 18, and 19
are in the amount of $93,200.00 which is in excess of one -half of one percent of the contractor's
total bid.
Furthermore, neither Optima RPM, Inc., nor their listed subcontractors hold the required
Landscaping "C-27' license.
Therefore, the submitted bid by Optima RPM, Inc. should be considered as non- responsive.
:a
Page 2
Second Cause of Action:
I. Item 1.05 -13 under Section 08-3323 "Overhead Coiling Doors" of the Technical Specifications
indicates that, "Overhead coiling oors are to be installed by a manufacturer's authorized
renraventadve".
The total amount for supply and installation of the indicated five (5) coiling doors are in excess
of one -half of one percent of the contractor's total bid, and Optima RPM, Inc. did not list any
subcontractor for this portion of the work.
Please note that, neither Optima RPM, Inc., nor their listed subcontractors are Manufacturer's
authorized installers for the specified "Cookson Company ". Furthermore, Optima RPM, Inc.
will not be able to receive the required two (2) years warranty for such installation, even if they
self - perform the work.
Therefore, the submitted bides Optima RPM, lnc. should be considered as non- responsive.
Third Cause of Action:
1. Performing the Electrical and plumbing portion of the project requires a contractor's license
classification of "C- 1.0", and "C -36" respectively.
The total amount for the Electrical and. Plumbing portion of the project are in excess of
one -half of one percent of the contractor's total bid, and Optima -RPM, Inc. did not list any
subcontractor for those portion of the work.
Please note that, neither Optima RPM, Inc., nor their listed subcontractors hold the required
Electrical "C.10 "and Plumbing "C36" license.
Therefore the submittod bid by Optima RPM Inc. should be considered as non responsive.
Please be advised that in addition to the non - compliance with the bid proposal documents
indicated above, and flailing to list the subcontractors in their bid proposal will allow Optima RP-M, Inc.
the opportunity to shop around for pricing to perform the above mentioned work after the specified bid
date and time. Consequently, this type of noncompliance within the bid documents has placed other
bidders at a disadvantage position during the binding process.
We appreciate your response in this matter and if you have any questions, please do not hesitate to
contact me at your converlont.
i
Sincerely,
VII Mike S ghaf
M.S. Construction gran
Cc, File
325658 Golden Lantern #475 - Dana Point, Ca. 92629 - Tel. (949)276 -5589 - Fax (949)276 -4874
.S